3 Things You Need to Know If You Buy Ultra-High-Yield Annaly Capital Today

Core Viewpoint - Annaly Capital's high dividend yield of 12.8% does not necessarily indicate a strong investment opportunity due to its volatile dividend history and the nature of its business model [1][4][12]. Group 1: Business Model - Annaly Capital operates as a mortgage REIT, which differs from traditional REITs that own physical properties; it primarily holds a portfolio of mortgage-backed securities [5][9]. - The value of Annaly's stock is closely tied to its mortgage bond portfolio, making it sensitive to market changes such as interest rates and property market dynamics [2][5]. Group 2: Dividend Performance - Annaly Capital has a history of volatile dividends, with a downward trend over the past decade, which is not suitable for investors seeking reliable passive income [6][11]. - The stock price of Annaly tends to fluctuate in line with its dividend changes, indicating that investors react strongly to dividend announcements [3][7]. Group 3: Investment Alternatives - Investors attracted to Annaly's high yield are encouraged to consider other income stocks with better dividend growth prospects, such as Realty Income, Vici Properties, and EPR Properties [13].